Khushi Dubey
FrankBanker    Intern   Exp: Fresher   Enthusiast

Source: RBI At end-March 2018, there were 45 MF companies registered with the SEBI which managed an AUM of `21,360.4 billion. Of the total AUM, 83 per cent was held by private sector MFs and 17 per cent by public sector ...Read more

Source: RBI

At end-March 2018, there were 45 MF companies registered with the SEBI which managed an AUM of `21,360.4 billion. Of the total AUM, 83 per cent was held by private sector MFs and 17 per cent by public sector MFs. This remarkable transformation has greatly facilitated shifts in household saving patterns. Indian households, which contributed 54.0 per cent of the gross savings of the economy in 2016-17, have historically been risk-averse, preferring investments in physical assets and gold. However, this pattern is slowly changing in the backwash of demonetisation in November 2016 and shifts towards MFs have become large.

With increasing development of the financial sector, the household sector’s savings in physical assets and gold & silver ornaments taken together declined significantly from 60 per cent in 2011-12 to 51 per cent in 2016-17.

COVID-19 and its economic and social disruptions have given new urgency to the challenges facing mutual funds. We expect to see from 2019 to 2025, such as slower growth and shrinking fees. These trends have all accelerated, and mutual fund managers need to move even faster to maintain and improve their positions.

 

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Tithi Sanghavi
EY    Senior Analyst   Exp: 1 Year   Enthusiast

Ukraine raises $277 million from sale of ‘War Bonds‘ A war bond is a debt security issued by a government to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market ...Read more

Ukraine raises $277 million from sale of ‘War Bonds

A war bond is a debt security issued by a government to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market rate, investment was achieved by making emotional appeals to patriotic citizens to lend the government money.

Although war bonds do not typically pay interest/coupon, they are sold at a discount that mature to face value giving some positive return. The war bonds are one of a number of crowdfunding measures by Ukraine to raise money for both its armed forces and civilians as the country faces down a vastly bigger military force.

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Siddharth_kaushik
Frankbanker    Intern   Exp: Fresher   Enthusiast

DBU is a specialized fixed point business unit / hub that houses certain minimal digital infrastructure for delivering digital banking products and services, as well as servicing existing financial products and services digitally, in both self-service and assisted mode, to ...Read more

DBU is a specialized fixed point business unit / hub that houses certain minimal digital infrastructure for delivering digital banking products and services, as well as servicing existing financial products and services digitally, in both self-service and assisted mode, to enable customers to have cost effective/convenient access to/of such products and services in an efficient, paperless, secured, and connected environment with most services.

All scheduled commercial banks (other than RRBs, PBs, and LABs) with prior digital banking experience are permitted to open DBUs in Tier 1 to Tier 6 centers, unless otherwise specifically restricted, according to RBI’s detailed guidelines, without the need to seek permission from the Reserve Bank of India in each case.

I believe that digital banking units can enable last-mile financial inclusion by allowing lenders to reach a larger customer base at a lower cost. The digital economy is quickly expanding. Next-generation solutions are required in all sectors of the economy, including commerce, finance, and logistics. The government’s focus on human capital development and the creation of courses in this area is quite welcome. This will also aid in the retraining of human capital for the new economy.

DBU’s shortcomings include limited public awareness and broadband penetration in lower-tier cities. Furthermore, if DBUs are to realize their full potential, issues such as cyber security, data privacy, and phishing must be addressed.

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Khushi Dubey
FrankBanker    Intern   Exp: Fresher   Enthusiast

What Is Working Capital Management? Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to their most effective use. The efficiency of working capital management can be ...Read more

What Is Working Capital Management?

Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to their most effective use.

The efficiency of working capital management can be quantified using ratio analysis.

Why Manage Working Capital?

Working capital management helps maintain the smooth operation of the net operating cycle, also known as the cash conversion cycle (CCC)—the minimum amount of time required to convert net current assets and liabilities into cash.

Working capital management can improve a company’s cash flow management and earnings quality through the efficient use of its resources. Management of working capital includes inventory management as well as management of accounts receivable and accounts payable.

Working capital management also involves the timing of accounts payable (i.e., paying suppliers). A company can conserve cash by choosing to stretch the payment of suppliers and to make the most of available credit or may spend cash by purchasing using cash—these choices also affect working capital management.

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Siddharth_kaushik
Frankbanker    Intern   Exp: Fresher   Enthusiast

India’s total exports (Merchandise and Services combined) are expected to be USD 545.71 billion in April-January 2021-22, representing a 37.68% increase over the same period last year and a 23.29 percent increase over April-January 2019-20. Overall imports are expected to be ...Read more

India’s total exports (Merchandise and Services combined) are expected to be USD 545.71 billion in April-January 2021-22, representing a 37.68% increase over the same period last year and a 23.29 percent increase over April-January 2019-20.

Overall imports are expected to be USD 616.91 billion in April-January 2021-22, representing a positive rise of 54.35 percent over the same period last year and a positive growth of 20.15 percent over April-January 2019-20.

India’s exports have been steadily expanding in recent months, showing a significant boost in demand for goods and services as global markets recover. One of the primary reasons for the increase in exports is pent-up demand that was not supplied during big waves of the Covid-19 outbreak. Expansionary monetary policy enacted by industrialised countries in response to the economic impact of the pandemic has raised demand for Indian exports.

This fiscal year, India’s main export is engineering items, which include iron and steel products, industrial machinery, and vehicles. They account for 25% of overall merchandise exports from the nation. In April-September 2021, India exported $52.3 billion in engineering goods, a 61.4 percent increase from $32.4 billion in the same period the previous year.

The top five commodity groups shipped by India in July 2021 were:

  • petroleum products (215 percent)
  • Gems and jewellery (130 percent)
  • Other grains (70.25 percent)
  • Man-made yarn and textiles (58 percent)
  • Cotton yarn and fabrics (58 percent).

Exports to the United States ($6.7 billion), the United Arab Emirates ($2.4 billion), and Belgium ($826 million) saw the greatest value increases. In July, overall goods exports reached a new high due to a spike in oil exports. Maintaining current levels of oil exports would significantly boost goods export growth in FY22.

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